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Best Utility ETFs in Canada (2026): XUT, ZUT and Infrastructure ETFs Compared

Updated

A utility ETF holds a basket of utility company shares, such as the Canadian utilities iShares targets with XUT. The choices inside the family are how the fund holds those stocks, weighted by company size with a cap or in equal amounts; whether the issuer adds covered calls or borrowed money on top; and whether the fund stays in Canada. Infrastructure funds, compared in their own section, hold a wider mix, often worldwide, that takes in utilities. Rather than naming a winner, this page explains how the funds work and sets out a dated table of each issuer’s figures.

What do utility ETFs hold, and why are utilities called defensive?

S&P Dow Jones Indices sorts companies into GICS sectors, and utilities is one of them. Its S&P/TSX sector indices take stocks from the S&P/TSX Composite that GICS places in the sector. XUT follows the S&P/TSX Capped Utilities Index and held 13 companies at October 9, 2026; ZUT’s index is made up of stocks classed as utilities and held 12 at September 30, 2026. Some utility funds go beyond the sector: BMO’s ZWU and Hamilton’s HUTS also hold telecom and pipeline companies.

“Defensive” is how the issuers selling these funds describe the sector. Harvest says utilities are “historically known for their defensive characteristics”, with relative stability and steady dividends, and Hamilton calls utilities a relatively defensive sector.

How much a broad fund already holds. Utilities were 3.32% of XIC at October 7, 2026, a fund iShares says owns the whole Canadian stock market. A utility fund added on top raises the share of one sector in a portfolio; sector and thematic ETFs explains what that concentration means.

Capped weight, equal weight, or calls on top: how are utility ETFs built?

Capped weight. XUT follows one of S&P’s capped sector indices, which limit how much any single company can weigh.

Equal weight. BMO’s ZUT gives each stock in its index a fixed weight instead of one based on company size (market capitalization), which BMO says lessens the risk tied to single stocks. Harvest’s HUTL also holds its global utilities in equal amounts.

Calls or borrowing on top. As the Nova Scotia Securities Commission describes it, a covered-call fund sells options on some of its holdings and collects a premium from the buyer. BMO says ZWU writes covered calls, and Harvest says HUTL generally writes them on up to a third of its holdings. Two funds borrow cash to add leverage: Hamilton’s HUTS uses borrowing to invest in the utilities index fund it holds, and Harvest’s HUTE invests in HUTL on a levered basis. How these funds work, and what they give up, is on our covered-call ETFs page.

The main utility and infrastructure ETFs compared

The table lists utility and infrastructure funds listed in Canada that publish an MER and net assets, in two groups, each sorted by the net assets its issuers report. Each figure comes from the issuer’s fact sheet, ETF Facts or fund page. Hamilton’s utilities index fund that HUTS invests in is left out, and so are funds listed outside Canada, which are taxed differently; US-listed vs Canadian-listed ETFs compares the two.

Utility funds

6 funds, MERs from 0.61% to 1.72%

FundWhat it holdsHoldingsHedged to CADMERDistributions
ZWUBMO Covered Call Utilities ETFNorth American utilities, telecom and pipeline companiesWrites covered calls51as of September 30, 2026Yes0.71%Monthly
ZUTBMO Equal Weight Utilities Index ETFCanadian utilities, equal weighted12as of September 30, 2026Not stated0.61%Lowest in groupMonthly
XUTiShares S&P/TSX Capped Utilities Index ETFCanadian utilities (S&P/TSX Capped Utilities Index)13as of October 9, 2026Not stated0.61%Lowest in groupMonthly
HUTLHarvest Utilities Leaders Income ETFGlobal utilities, telecom and pipeline companies, equally weightedWrites covered calls30as of September 30, 2026Yes0.64%Monthly
HUTSHamilton Enhanced Utilities ETFCanadian utility, telecom and pipeline companies, with 25% borrowed leverage12as of July 31, 2026No0.84%Monthly
HUTEHarvest Utilities Leaders Enhanced Income ETFGlobal utilities, telecom and pipeline companies, via HUTL, with borrowed leverageWrites covered callsNot publishedNot stated1.72%Monthly

Infrastructure funds

5 funds, MERs from 0.61% to 0.93%

FundWhat it holdsHoldingsHedged to CADMERDistributions
CIFiShares Global Infrastructure Index ETFGlobal infrastructure companies, including transportation, water utilities and electricity services60as of October 9, 2026Not stated0.72%Quarterly
ZGIBMO Global Infrastructure Index ETFInfrastructure companies listed in Canada or the US50as of September 30, 2026Not stated0.61%Lowest in groupQuarterly
CINFCI Global Infrastructure Private PoolCompanies with direct or indirect exposure to infrastructure, anywhere in the worldNot publishedNot stated0.90%Monthly
TINFTD Active Global Infrastructure Equity ETFCompanies that own or operate infrastructure assets anywhere in the world52as of December 31, 2025Not stated0.73%Quarterly
DXNDynamic Active Global Infrastructure ETFGlobal, publicly traded infrastructure companies, actively managed44as of August 31, 2026Not stated0.93%Variable

Issuer-published figures. Holdings counts are each as of the date shown under them. MER as of BMO: the latest audited year (fact sheet of August 31, 2026) or the latest audited year (fact sheet of September 30, 2026); CI: March 31, 2026; Dynamic: December 31, 2025; Hamilton: June 30, 2026; Harvest: June 30, 2026; TD: June 30, 2025; iShares: the latest figure on the iShares fund page of October 12, 2026 (each issuer's latest reported MER). Each ticker links to the issuer's page, which has the current price, holdings, distributions and performance.

“What it holds” is the issuer’s own description, and “Writes covered calls” marks the funds that sell options. ZWU is also listed with the covered-call funds. “Hedged to CAD” reads “Not stated” where the issuer’s documents don’t say. There are no return or yield columns: each ticker links the issuer’s page, where price, performance and distributions are shown, and its ETF Facts.

How do the funds differ?

Fees. XUT and ZUT both have an MER of 0.61%. HUTL and ZWU, which write covered calls, cost more: 0.64% for HUTL and 0.71% for ZWU. HUTS’s MER is 0.84% after Hamilton waived some expenses, and HUTE’s 1.72% includes its share of HUTL’s costs. Among infrastructure funds, MERs run from 0.61% for ZGI to 0.93% for DXN.

How many companies. The two Canadian index funds hold fewer stocks than HUTL and ZWU, which reach beyond Canada: 13 in XUT and 12 in ZUT, against 30 in HUTL and 51 in ZWU. The infrastructure index funds also hold more than XUT and ZUT: 60 in CIF and 50 in ZGI.

Index or manager. XUT, ZUT, CIF and ZGI follow an index; CI, TD and Dynamic describe CINF, TINF and DXN by what they invest in, and Dynamic says DXN is actively managed. Weighting is explained above.

Distributions. The six utility funds pay monthly. CIF, ZGI and TINF pay quarterly and CINF monthly. Distributions are never guaranteed.

What do infrastructure ETFs hold, and how do they differ from utility ETFs?

Infrastructure funds hold companies that own or operate infrastructure, and utilities are among them. iShares says CIF gives exposure to infrastructure companies around the world, including transportation, water utilities and electricity services. BMO’s ZGI follows an index that admits a company when more than 70% of its cash flows come from developing, owning, leasing or managing infrastructure assets, and its companies must be listed in Canada or the US. TD says TINF invests in companies that own or operate infrastructure anywhere in the world, CI describes CINF’s holdings as companies with direct or indirect exposure to infrastructure, and Dynamic’s DXN holds publicly traded infrastructure assets worldwide.

Funds holding foreign companies can carry currency risk, the risk of losing money when the exchange rate moves; hedged vs unhedged ETFs explains how hedging works. iShares notes that Canadian-listed ETFs holding international stocks are generally subject to foreign withholding tax; see international ETFs and withholding.

Funds that hold pipeline and oil and gas companies on their own are on our energy ETFs page, and funds of real estate investment trusts are compared on REIT ETFs in Canada.

What don’t utility and infrastructure ETFs do?

  • They don’t spread across the market. A fund focused on a few kinds of investment may swing more over short periods than a broadly diversified one; see sector and thematic ETFs.
  • “Defensive” is a description, not a promise. It is the issuers’ word (see above); even a fund with a low risk rating can lose money.
  • Covered calls give up some gains. Fidelity notes that option premiums may fall short of what the fund would have earned holding the stocks outright.
  • Borrowing can speed losses. Hamilton warns that in some markets HUTS’s leverage may make your investment fall in value faster.
  • Distributions can lower your cost base. A return of capital is the part of a fund's distribution that is more than its earnings; it isn't taxed in the year you receive it but reduces the adjusted cost base (ACB) of your units, which generally means a larger capital gain or smaller capital loss when you sell, and if it takes the ACB below zero the negative amount is a capital gain for that year. See return of capital.
  • They aren’t deposits. ETFs aren’t covered by CDIC deposit insurance.

Where to go next

Sources

The figures and rules on this page come from these sources, last checked against them between October 1, 2026 and October 13, 2026. How we check facts.